A Negative Cash Conversion Cycle ________

question 172

Multiple Choice

A negative cash conversion cycle ________.

• A) means that the operating cycle exceeds the average inventory period
• B) means that the average payment period exceeds the operating cycle
• C) indicates that a firm is shortening its average payment period and lengthening its average collection period
• D) indicates that a firm is shortening its average age of inventory and average payment period

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